We're Going Back Into High-Yield Debt, Says Legal and General's Roe

We're Going Back Into High-Yield Debt, Says Legal and General's Roe

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

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The video discusses the performance of high yield debt, noting its recent correction and attractiveness compared to other credit classes. It highlights the impact of liquidity on investment strategies and the potential risks associated with leveraged loans. The discussion also covers expected default rates and market outlook for 2019, emphasizing the importance of understanding market dynamics and risk management.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was one of the better performing credit asset classes in Q1?

Investment grade debt

Leveraged loans

Emerging market debt

High yield debt

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is the lack of liquidity in high yield debt considered attractive?

It increases default rates

It reduces risk

It offers better entry points

It allows for quick exits

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a concern when trying to exit high yield debt positions?

High default rates

High transaction costs

Long duration

Lack of liquidity

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why are leveraged loans not an obvious buy according to the speaker?

They have low returns

They carry risks that are hard to price

They are easy to price

They have high liquidity

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What default rate is expected in the high yield space for 2019?

2-3%

0.5%

1-2%

4-5%